In manufacturing businesses, forecasting expenditures is a bit more complex than in wholesale businesses because _____ must be derived first.
A) employee salaries
B) inventory expenses
C) factory overhead
D) cost of goods sold
E) maintenance expenses

Question

In manufacturing businesses, forecasting expenditures is a bit more complex than in wholesale businesses because _____ must be derived first.
A) employee  salaries
B) inventory expenses
C) factory overhead
D) cost of goods sold
E) maintenance expenses

Quizplus · Accepted Answer

In manufacturing businesses, the cost of goods sold (COGS) must be derived first to accurately forecast expenditures. This is because COGS directly influences the production costs, including raw materials, labor, and overhead, making it a critical factor in budgeting and financial planning.

In Manufacturing Businesses, Forecasting Expenditures Is a Bit More Complex